21 February 2012

KUALA LUMPUR (Feb 21, 2012): Flexible packaging solutions provider Daibochi Plastic and Packaging Industry Bhd sees maiden revenue contributions from new sectors in the current financial year ending Dec 31, 2012 (FY12).

While Daibochi has established a reputable clientele in the food and beverage (F&B) and fast-moving consumer goods (FMCG) industries, it has sought to make inroads into non-F&B sectors, namely the medical glove and electronics.

“Thus far, we are continuing to target potential customers in Australia as well as multinational customers in the F&B sector, and are hopeful to begin supplying flexible packaging to them in FY12,” said Daibochi managing director Thomas Lim in a statement yesterday.

“Additionally, the group has made significant progress in the past financial year in testing and certifying our flexible packaging with local medical glove manufacturers and with electronics manufacturers abroad. The group’s diversification into the non-F&B sectors would be a strategic step towards enhancing our financial performance for the long term,” he added.

For the financial year ended Dec 31, 2011 (FY11), Daibochi recorded a 10.3% jump in net profit to RM20.1 million from RM18.2 million previously, on the back of a 6.2% growth in revenue to RM284.2 million from RM267.7 million in FY10. For the final quarter, net profit was higher at RM5.91 million against RM4.16 million a year earlier.

The higher revenue was attributable to the packaging segment, which saw a 9.4% increase to RM267.9 million in FY11 from RM244.9 million previously.

Meanwhile, contributions from the group’s property development segment declined to RM16.3 million in FY11 from RM22.8 million previously, in line with the group’s intention to focus on its core packaging segment.
Daibochi declared a fourth interim tax-exempt dividend of four sen per share, amounting to RM3 million, to be paid on March 23.

This brings total dividends for FY11 to 13.5 sen per share, translating to RM10.1 million or 50.3% of net profit attributable to shareholders.